US second-quarter growth accelerates to 2.6%

The US economy gathered speed in the second quarter of the year, growing at an annualised pace of 2.6%.

The pick-up was helped by consumer spending in the quarter expanding at a pace of 2.8%, and businesses stepping up spending on equipment.

The growth rate for the first quarter was cut to 1.2%, compared with the previous estimate of 1.4%.

This week, the IMF revised down its US growth forecast for this year from 2.3% to 2.1%.

President Trump has pledged to pursue policies to boost the US economy, including cutting corporate and individual taxes, but has faced a Washington impasse.

The latest growth figures suggest the Federal Reserve could still raise interest rates later this year for the third time in 2017. The central bank left rates unchanged on Wednesday following its latest meeting.

Consumer spending, which makes up more than two-thirds of the US economy, accelerated from the 1.9% growth figure from the first quarter.